NeoPhotonics Reports Equity Award Inducement Grants to Employees Hired with the Acquisition of Emcore's Narrow Linewidth Tunable Laser Product Line

SAN JOSE, Calif.--(BUSINESS WIRE)--

NeoPhotonics Corporation NPTN, a leading designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high speed communications networks, reported that in connection with the completion of its acquisition of the Narrow Linewidth Tunable Laser Product Line of EMCORE Corporation, the company granted special inducement equity awards under the NeoPhotonics 2011 Inducement Award Plan to retain certain former Emcore employees (23 in total) as employees of the NeoPhotonics group. The company granted equity awards for an aggregate of 115,000 shares: stock options to purchase 110,000 shares and 5,000 restricted stock units. Each option vests 25% on January 5, 2016 (approximately the first anniversary of the closing of the Emcore asset acquisition) and the remainder in thirty-six substantially equal monthly installments thereafter, subject to such optionee being employed by the NeoPhotonics group on the applicable vesting dates. The stock options have a ten year term and an exercise price equal to $3.34 per share, which was the closing price of NeoPhotonics common stock on the New York Stock Exchange on the date of grant. The Restricted Stock Units vest in equal installments on each anniversary over four years. The equity awards were approved by the Compensation Committee of the NeoPhotonics board of directors and were granted as a material inducement to employment with the NeoPhotonics group.

The NeoPhotonics Board of Directors approved the 2011 Inducement Award Plan based on the employment inducement exemption provided under the NYSE listing standards. As a result, the 2011 Inducement Award Plan did not require shareholder approval, and this press release is being issued pursuant to applicable NYSE guidance.

About NeoPhotonics

NeoPhotonics is a leading designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks. The Company's products enable cost-effective, high-speed data transmission and efficient allocation of bandwidth over communications networks. NeoPhotonics maintains headquarters in San Jose, California and ISO 9001:2000 certified engineering and manufacturing facilities in Silicon Valley (USA), Japan and China. For additional information visit

www.neophotonics.com.

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